EUR session outlook
EUR/USD rose sharply yesterday in Asia on at times ‘silly’ EUR/JPY price action and then fell back after rather poor PMI data out of Europe. If we’ve learned anything over the course of the EZ debt crisis, it’s that we cannot trade EUR off fundamentals!
EUR/JPY will again be the key and I would not be surprised to see a wide 113/116 range over the next two days. Risk-reward would therefore seem to suggest that selling rallies from current levels at 115.10 may prove to be a more profitable play?
In EUR/USD, Sovereign players are reportedly on the bid below 1.3150 but we know neither the levels nor the amounts so I wouldn’t base any strategies off this information. What we can say is that the recent 1.3150/1.3300 range has been very solid so best we continue to play this until something changes.